Sarah Tran
Independent Analyst
- Ark Invest’s newly proposed Bitcoin ETF has been one of the latest addition to a growing list of applications for a crypto ETF in the United States.
- The investment management firm has partnered with 21Shares for a joint Bitcoin ETF filing with the US SEC.
- The trust underpinning the ETF would also hold BTC directly.
Ark Investment Management has joined a list of firms to file a Bitcoin-exchange traded fund (ETF) with the United States Securities & Exchange Commission (SEC).
Ark Invest jumps into Bitcoin ETF race
The New York-based investment management firm with over $50 billion in assets under management has partnered with European exchange-traded product issuer 21Shares to file for a Bitcoin ETF – the Ark21Shares ETF.
According to the SEC filing, the Bitcoin ETF would be listed on the Chicago Board Options Exchange’s (Cboe) BZX Exchange. Cboe has filed multiple filings to launch other similar funds, including VanEck and WisdomTree’s BTC ETF.
The ETF would consist of holding Bitcoin directly, as well as tracking the S&P BTC index – a tool developed by the S&P Dow Jones Indices. The index relies on data from Binance, Bitfinex, Bittrex, Bitstamp, Coinbase Pro, Gemini and a few other exchanges to reach a unified price based on “a combination of qualitative and quantitative metrics.”
The founder and CEO of Ark Investment Management, Cathie Wood, is also a board member of 21Shares, the fourth-largest institutional crypto product issuer by assets under management with over $1 billion.
21Shares is the sponsor of the trust, while Ark Invest will support marketing the ETF shares, according to the filing.
Bank of New York Mellon will act as an administrator and transfer agent for the newly proposed ETF, while Coinbase is expected to custody the Bitcoin directly purchased.
Bitcoin ETF applications have witnessed a wave of extensions as the SEC requires more time to examine the proposals before making a decision. The newly proposed ETF will see its clock start on a decision when Cboe files the companion 19b-4 for the ARK 21Shares offering.
Recently, the SEC asked the public to weigh in on the VanEck Bitcoin ETF proposal. The securities regulator would like interested parties to give feedback on the potential risks the new financial product would pose to the market.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.